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Targeting Profitable Consumer Trends In Brazil, Russia, India and ChinaPublished by: Datamonitor Published: Dec. 14, 2006 - 134 Pages Table of ContentsTABLE OF CONTENTS CHAPTER 1 EXECUTIVE SUMMARY 3 The hot topic 3 The future decoded 3 Action points 5 CHAPTER 2 THE FUTURE DECODED 17 Context - understanding the BRIC region 17 The emergence of the ‘BRIC’ moniker 17 PESTLE analysis of the BRIC region 18 Socio-demographic overview 20 TREND: There is a burgeoning middle class emerging in the BRIC markets 24 The potential for middle class expansion varies by BRIC market 24 Brazil’s open and relatively stable democracy bodes well for the future development of the middle class 24 The once precarious state of the middle class in Russia is now stabilizing 30 Of all BRIC markets, India’s knowledge economy has the most stable middle class potential 34 China’s middle class is strongest in urban areas 37 TREND: There is an aging of BRIC populations 41 The rapid evolution of middle classes, combined with a demographic shift in favor of seniors, will enable BRIC countries to emulate Western markets 41 BRIC countries have broadly enjoyed young population bases in the past 42 Overall there is an aging of the BRIC region but there is some important variance 43 Brazil is experiencing a rapidly aging population 46 Russia - declining life expectancy and birth rates create a worrying population decline 48 India - the aging population is a concern for the longer term rather than the medium term 51 China - rapid aging of the population is having a fundamental impact 53 An aging population brings with it new needs 54 INSIGHT: Dietary patterns in the BRIC countries are highly diverse 57 Meat and fish consumption varies between BRIC countries 57 Fruit and vegetable consumption and preferences vary widely 58 Bottled water consumption is rising rapidly in India and China with slower growth in Russia and Brazil 63 INSIGHT: Health is a growing concern, particularly as ‘Western’ diseases proliferate in this region 68 Obesity and hypertension are increasingly prevalent in the BRIC countries 68 Sales of nutraceuticals and dietary supplements are growing across the BRIC region 71 INSIGHT: Convenience is of growing importance to select consumers on select occasions 73 BRIC consumers are beginning to embrace convenience focused meal solutions 73 Consumer attitudes towards frozen foods are developing as such foods become more widely available 77 A large proportion of BRIC consumers function without washing machines and dryers 81 Outsourcing laundry to domestic helpers remains prevalent in all BRIC countries 84 Approaches to washing and use of detergents varies between countries 85 Clothing odor and hygiene is a problematic issue for BRIC consumers 88 Dishwashers are seen as aspirational and are rarely used by BRIC consumers 92 INSIGHT: Sensory and pleasure focused consumption is increasingly prominent 94 Consumption of pleasure orientated food and drink is growing as more consumers are able to trade up 94 Food and drink flavor preferences vary slightly by country 95 Consumer packaged goods marketing claims highlight shifting preferences among BRIC consumers 98 Takeaway food occasions are becoming popular in BRIC countries 101 Local foods are the most heavily consumed while other ethnic dishes are gaining in popularity 104 INSIGHT: Consumption of food, drinks and personal care reveal significant age and gender differences 106 Personal care consumption by age and gender 107 Alcoholic drinks consumption by age and gender 109 Soft drink consumption by age and gender 111 Confectionery and savory snacks consumption by age and gender 113 Prepared meals consumption by age and gender 115 Conclusions 118 CHAPTER 3 ACTION POINTS 119 Introduction 119 ACTION: Prepare for the future with higher premium products as the middle classes broaden and deepen 120 Link aspirational brands with aspects of popular culture and fashion 120 ACTION: Take existing mature brands into new BRIC markets to develop as “cash cows” in select cases 122 ACTION: Take steps to protect intellectual property 122 Work with regulating authorities and joint venture partners to ensure the integrity of their brands 123 ACTION: Target aging populations via product development and marketing communications 123 Target the older consumer group - their strategic importance will only grow 123 Make older consumers more inclusive with “ageless marketing” 123 Respond to the veneration of seniors in certain societies 124 Companies that adapt the quickest will thrive 125 ACTION: Target the health and wellness trend 126 Look to re-formulate existing products and market them as better-for-you alternatives 126 Introduce consumer education programs about healthy eating and to build long-term brand trust 128 ACTION: Target the need for time-saving devices and services 129 Incorporate convenience orientated product attributes into your offerings 129 Promote convenient products as a way of allowing consumers to enjoy more family time 131 APPENDIX 133 Definitions 133 Research methodology 134 How to contact experts in your industry 134 LIST OF TABLES Table 1: Population growth in the BRIC region (millions), 2000-2010 21 Table 2: Population by family status in the BRIC region (% of total population), 2000-2010 22 Table 3: Population by ethnic background in the BRIC region (% of total population), 2000-2010 23 Table 4: GDP per capita (US$), 2000-2010, Brazil and the US 25 Table 5: Gini co-efficient, 2000-2010, Brazil 26 Table 6: Income quintile distribution (US$), 2005, Brazil 27 Table 7: Home occupancy ownership (%) and average home price (US$), 2000-2010, Brazil and the US 28 Table 8: Gini co-efficient, 2000-2010, Russia 30 Table 9: Income quintile distribution (US$), 2005, Russia 31 Table 10: GDP per capita (US$ 1995), 2000-2010, Russia and the US 32 Table 11: Home occupancy ownership (%) and average home price (US$), 2000-2010, Russia and the US 33 Table 12: Gini co-efficient, 2000-2010, India 35 Table 13: Income quintile distribution (US$), 2005, India 35 Table 14: GDP per capita (US$), 2000-2010, India and the US 36 Table 15: Home occupancy ownership (%) and average home price (US$), 2000-2010, India and the US 36 Table 16: Gini co-efficient, 2000-2010, China 37 Table 17: Income quintile distribution (US$), 2005, China 38 Table 18: GDP per capita (US$), 2000-2010, China and the US 39 Table 19: Home occupancy ownership (%) and average home price (US$), 2000-2010, China and the US 39 Table 20: Brazil population forecast (millions) by age band, 2006-2010 47 Table 21: Brazil population by age and gender (%), 2006 and 2010 48 Table 22: Brazil life expectancy by gender, 2001-2010 48 Table 23: Russia population forecast (millions) by age band, 2006-2010 50 Table 24: Russia population by age and gender (%), 2006 and 2010 50 Table 25: Russia life expectancy by gender, 2001-2010 50 Table 26: India population forecast (millions) by age band, 2006-2010 52 Table 27: India population by age and gender (%), 2006 and 2010 52 Table 28: India life expectancy by gender, 2001-2010 52 Table 29: China population forecast (millions) by age band, 2006-2010 53 Table 30: China population by age and gender (%), 2006 and 2010 54 Table 31: China life expectancy by gender, 2001-2010 54 Table 32: Meat and fish consumption per capita in the BRIC region (kilograms), 2000-2010 58 Table 33: Fruit and vegetable consumption per capita in the BRIC region (kilograms), 2000-2010 59 Table 34: Most popular five vegetables and fruits by consumption, Brazil 2005 60 Table 35: Most popular five vegetables and fruits by consumption, Russia 2004 61 Table 36: Most popular five vegetables and fruits by consumption, India, 2005 62 Table 37: Sales of bottled water in Brazil by type (Liters, millions), 2000-2010 64 Table 38: Bottled water consumption in Russia (Liters), 2000-2010 65 Table 39: Sales of bottled water in Russia by type (Liters, millions), 2000-2010 65 Table 40: Sales of bottled water in India by type (Liters, millions), 2000-2010 66 Table 41: Sales of bottled water in China by type (US$m), 2000-2010 67 Table 42: BRIC countries, incidence of obesity (millions), 2000-2010 69 Table 43: BRIC countries, incidence of hypertension (millions), 2000-2010 71 Table 44: Nutraceutical and OTC vitamin & mineral sales in the BRIC region (US$ millions), 2000-2010 72 Table 45: Nutraceutical and OTC vitamin & mineral expenditure per capita in the BRIC region (US$/head), 2000-2010 72 Table 46: Ready meal sales per annum, Brazil, 2000-2010 74 Table 47: Ready meal sales per annum, Russia, 2000-2010 75 Table 48: Ready meal sales per annum, India, 2000-2010 76 Table 49: Ready market value by type (US$ m), China, 2000-2010 77 Table 50: Frozen food sales per annum, Brazil, 2000-2010 78 Table 51: Frozen food sales per annum, Russia, 2000-2010 79 Table 52: Frozen food sales per annum, India, 2000-2010 80 Table 53: Frozen food sales per annum, China, 2000-2010 81 Table 54: Clothing detergent sales by type in Brazil (US$m), 2000-2010 86 Table 55: Clothing detergent sales by type in Russia (US$m), 2000-2010 86 Table 56: Product features of clothing detergents launched in India, Jan 2001- Aug 2006 87 Table 57: Consumption of pleasure orientated food and drinks by volume in the BRIC region, liters million, 2000-2009 94 Table 58: Brazil: Top 15 flavors in new food and drinks launches (% of total launches), Dec 05-06 95 Table 59: Russia: Top 15 flavors in new food and drinks launches (% of total launches), Dec 05-06 96 Table 60: India: Top 15 flavors in new food and drinks launches (% of total launches), Dec 05-06 97 Table 61: China: Top 15 flavors in new food and drinks launches (% of total launches), Dec 05-06 98 Table 62: Brazil: Top ten on-pack marketing claims in new food and drinks launches (% of total launches), Dec 05-06 99 Table 63: Russia: Top ten on-pack marketing claims in new food and drinks launches (% of total launches), Dec 05-06 100 Table 64: India: Top ten on-pack marketing claims in new food and drinks launches (% of total launches), Dec 05-06 100 Table 65: China: Top ten on-pack marketing claims in new food and drinks launches (% of total launches), Dec 05-06 101 Table 66: Takeaways in Brazil, 2004-2009 102 Table 67: Takeaways in China, 2005-2010 103 Table 68: Definitions of terms used in the report 133 LIST OF FIGURES Figure 1: PESTLE analysis of Brazil 18 Figure 2: PESTLE analysis of Russia 19 Figure 3: PESTLE analysis of India 19 Figure 4: PESTLE analysis of China 20 Figure 5: Brazil’s economy is based on services and commodity resources 29 Figure 6: Over 50s as a proportion of total population (%), BRIC countries and Western Europe, 1990 43 Figure 7: Over 50s as a proportion of total population (%), BRIC countries and Western Europe, 2006 45 Figure 8: Over 50s as a proportion of total population (%), BRIC countries and Western Europe, forecast 2010 46 Figure 9: Still water dominates China’s emerging bottled water market, 2000-2010 67 Figure 10: Clothing detergents in Brazil highlight the fact that they are designed for use in washing machines 83 Figure 11: China’s laundry detergent market is fragmenting into specialist products 90 Figure 12: BRIC countries: value of personal care consumption by age group (% value), 2004 108 Figure 13: BRIC countries: value of personal care consumption by gender (% value), 2004 109 Figure 14: BRIC countries: value of alcoholic drinks consumption by age group (% value), 2005 110 Figure 15: BRIC countries: value of alcoholic drinks consumption by gender (% value), 2005 111 Figure 16: BRIC countries: value of soft drinks consumption by age group (% value), 2004 112 Figure 17: BRIC countries: value of soft drinks consumption by gender (% value), 2004 113 Figure 18: BRIC countries: value of Impulse consumption by age group (% value), 2004 114 Figure 19: BRIC countries: value of Impulse consumption by gender (% value), 2004 115 Figure 20: BRIC countries: value of prepared meal consumption by age group (% value), 2004 116 Figure 21: BRIC countries: value of prepared meal consumption by gender (% value), 2004 117 Figure 22: The affluence and needs of the middle class inevitably evolves 121 Figure 23: Unilever's healthy ice cream, Kibon Ades, has been launched in Brazil 126 Figure 24: Nestle's Maggi Na Zdorovye! Salad Seasoning was recently introduced in Russia 127 Figure 25: Nestle Rice with Lotus Seed is a new type of nutritious baby food in China 128 Figure 26: Instill these product attributes in offerings to capitalize on consumers’ convenience related needs and behaviors 131 AbstractIntroductionBrazil, Russia, India and China (BRIC) markets have huge potential for the development of a stable consumer society that can be profitably targeted by consumer packaged goods players across the globe. Although the region requires further social cohesion and economic development to fully stabilize, players that act quickly and tailor their offering can reap significant rewards. Scope Quantitative consumer trend data across Brazil, Russia, India and China - with historical and future forecast focus Qualitative analysis of consumer group dynamics and the implications of these for companies seeking to target the lucrative BRIC consumer marketplace. Detailed analysis of consumer lifestyles, attitudes and needs affecting the packaged goods sectors and the influence of these on buying behavior. Detailed Action Points pinpointing how to fine tune your strategy and devise effective marketing concepts in this region. Highlights Wealth in Russia is still low, but improving. The wealth contained among the bottom 40% of the Russian population almost matches that of the middle quintile which is a pattern often repeated in established markets with stable middle classes. These patterns point towards a middle class of significant depth and affluence over the coming years. Hypertension, whilst exhibiting lower rates of growth across the BRIC countries than rises in obesity, is a larger problem overall in Brazil, India and China. Russian hypertension incidence is about 25% lower than obesity. In China it affects 21% of the total population and will rise by another 32 million cases by 2010. product branding and packaging will need to be unique and tamper-proof to overcome the counterfeit problem. Selling trust and product quality to the middle class in any BRIC market will be arguably more important than in developed markets where despite growing consumer cynicism the safety and quality of products is now often taken for granted. Reasons to Purchase Gain insight into the key issues and future development of an established consumer society in the BRIC region. Identify which consumer groups to target for profitable future growth. Improve your marketing strategy by tailoring your offering to the most important consumer trends. Get Full Details About This Report >> |
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